Malaysia e-Invoicing Guide For Donations & Contributions 

Malaysia’s e-Invoicing system, enforced by the Inland Revenue Board of Malaysia (LHDN) through the MyInvois platform, officially took effect on 1 August 2024, marking a fundamental shift in how financial transactions are documented across businesses, charities, and non-profit organisations. While the initial rollout focused on standard B2B, B2C, and B2G transactions, the regulatory scope was expanded under updated LHDN guidelines issued on 7 July 2025 to explicitly include donations and contributions.

Under these revised rules, most charities, foundations, non-governmental organisations (NGOs), and certain religious bodies are required to issue e-Invoices for monetary donations, regardless of whether the funds are received via cash, bank transfer, cheque, or digital payment methods. This clarification is critical not only for regulatory compliance but also for ensuring that donors can substantiate eligible tax relief claims. A clear understanding of these requirements enables organisations to remain compliant while strengthening transparency, accountability, and governance in the management of donated funds.

Key Takeaways

What Counts as a Donation

A donation is any voluntary monetary or in-kind contribution made with no expectation of return benefit.

Who Must Issue E-Invoices

Most registered charities, NGOs, and IOFs are required to issue e-invoices for monetary donations.

When to Issue E-Invoices

Issue an individual e-Invoice if requested; otherwise submit a monthly consolidated e-Invoice.

In-Kind Donations

No e-Invoice is needed for goods or services donated but keep internal records.

Key Compliance Rules

Follow BRN/TIN rules, meet deadlines, and apply different rules for religious or mixed-activity bodies.

What Counts as a Donation or Contribution?

A donation or contribution refers to any voluntary transfer of money, goods, or assets where the donor does not receive anything of equivalent value in return. These transfers are intended to support charitable, social, or community causes and play a vital role in funding non-profit activities across Malaysia.

Types of Contributions

1. Monetary Donations

Monetary contributions include any form of cash or cash-equivalent payment. This can be made via:

• Cash donations
• Bank transfers
• Cheques
• E-wallets or other digital payment methods

2. In-Kind Donations

In-kind contributions refer to non-monetary support provided to organisations or causes. These can include:

• Goods such as food, clothing, or equipment
• Services or volunteer work
• Use of premises for events or activities

3. Corporate Social Responsibility (CSR) Contributions

Companies often contribute as part of their CSR programs, providing either monetary or in-kind support to schools, hospitals, or community initiatives.

4. Sponsorships Without Commercial Benefit

Sponsorships that do not offer any direct commercial advantage to the donor also qualify as contributions. Examples include supporting charity events, community programs, or awareness campaigns.

Examples to Illustrate

• Donating RM100 to a registered charity during a fundraising drive
• Providing laptops or educational materials to schools as part of a CSR initiative
• Giving monthly zakat or tithes to a religious organisation

Understanding these categories is essential for organisations to determine whether e-Invoicing requirements apply under Malaysia’s updated guidelines, ensuring compliance and enabling donors to claim tax relief where eligible.

Read: Malaysia E-Invoicing System: What Businesses Need to Know

Who Must Issue E-Invoices for Donations?

Under Malaysia’s updated July 2025 e-Invoicing guidelines, all institutions receiving monetary donations or contributions are required to issue e-Invoices. This applies to cash, cheque, bank transfer, or e-wallet regardless of the payment method. The mandate ensures proper documentation for tax compliance and enables donors to claim eligible tax relief efficiently.

Breakdown by Organization Type

1. Charities, Foundations, NGOs, and IOFs

Registered charitable organisations, foundations, non-governmental organisations (NGOs), and Institutions, Organisations, or Funds (IOFs) that are tax-approved under Section 44(6) of the Income Tax Act must issue e-Invoices for all monetary donations they receive. These organisations must issue either:

• Individual e-Invoices when the donor requests one, or
• Consolidated e-Invoices aggregating all donations where no individual invoice was requested, submitted monthly via MyInvois Portal.

2. Religious Institutions

Religious institutions are exempt only where donations are purely for worship and the entity is not tax-approved. For example, a registered zakat fund must issue e-Invoices for donations.

Exemptions under July 2025 Guidelines

Certain organisations are exempt from issuing e-Invoices:

• Purely religious bodies that operate solely for worship and are not tax-approved. Donations received by such institutions—like a local mosque collecting weekly offerings—do not require e-Invoices.
  
• Bodies receiving non–tax-exempt donations. Organisations that are not eligible for tax exemption under ITA 1967 are not mandated to issue e-Invoices for donations.

Practical Examples for Clarity

• A cancer charity approved under Section 44(6) receives RM500 from a donor who requests an e-Invoice. The charity must issue an individual e-Invoice.
  
• A local mosque collects RM200 weekly donations for religious purposes. Since it is not tax-approved, no e-Invoice is required.
  
• An NGO conducting a fundraising drive aggregates RM5,000 in donations where no donors requested individual invoices. It must issue a consolidated e-Invoice by the 7th of the following month.

By clearly understanding who must issue e-Invoices, organisations can maintain compliance, ensure accurate reporting, and help donors access their tax relief efficiently.

Read: Step-by-Step Guide to Create e-Invoices via MyInvois Portal

Monetary Donations: When and How to Issue E-Invoices

For organisations receiving monetary donations, the issuance of e-Invoices depends on whether the donor requests one. Proper handling ensures compliance with Malaysia’s e-Invoicing regulations and enables donors to claim tax relief efficiently.

1. If the Donor Requests an E-Invoice

When a donor asks for an e-Invoice, the recipient must issue an individual e-Invoice for that donation.

Key points:

• Purpose: Provides the donor with proper documentation for tax deduction and personal recordkeeping.
  
• Timing: Issue the e-Invoice as soon as possible after the donation is received.
  
• Format: Issue via MyInvois Portal or an IRBM-compliant system using XML/JSON format.

2. If the Donor Does NOT Request an E-Invoice

If a donor does not request an e-Invoice, the organisation must include the donation in a monthly consolidated e-Invoice.

Process:

1. Aggregate all donations without individual e-Invoices at the end of the month.
2. Generate a consolidated e-Invoice through MyInvois or compatible accounting software.
3. Submit the consolidated e-Invoice within 7 days after month-end to IRBM.

Details to include:

• Buyer’s Name: General Public
• Buyer’s TIN: EI00000000010
• Registration/ID, Address, Contact: NA
• Description: List of receipt numbers or summary

Examples : Donor Request vs No Request

By following these steps, organisations can remain compliant with the updated e-Invoicing guidelines, streamline their accounting processes, and support donors in claiming tax relief effectively.

In-Kind Donations: Are E-Invoices Required?

For non-monetary contributions, organisations are not required to issue e-Invoices. This applies to donations where no cash or equivalent is exchanged.

Examples of In-Kind Donations

• Goods: Clothing, food, equipment, or office supplies donated to a charity or school.
• Services: Volunteer hours, professional services, or consultancy provided free of charge.
• Use of premises: Donating space for events, meetings, or community activities.

Why In-Kind Donations Are Excluded

E-Invoices are primarily designed to track monetary transactions for tax compliance. Since in-kind donations do not involve cash flow, they are exempt from e-Invoicing requirements.

Importance of Internal Recording

Even though e-Invoices are not required, organisations should record all in-kind donations internally:

• Maintain an accurate log for audit purposes.
• Recognise contributions in annual reports or CSR documentation.
• Track resource allocation to ensure transparency and proper utilisation.

Example: A company donates 50 boxes of food to a local orphanage. While no e-Invoice is needed, the orphanage should log the donation for internal records and reporting.

Recording in-kind contributions ensures organisations maintain accountability and can highlight community impact, even if tax reporting via e-Invoice is not required.

Self-Billed E-Invoices: Are Donors Responsible?

In Malaysia, donors are not responsible for issuing self-billed e-Invoices when making monetary donations. The recipient organisation holds full responsibility for issuing e-Invoices, whether individually requested by the donor or included in a consolidated monthly submission.

Clarification for Donations to Clubs, Informal Groups, or Non-Tax-Exempt Bodies

Even if you donate to:

• A local club not registered for tax relief,
• An informal community group, or
• Organisations without tax-exempt status,

you do not need to issue a self-billed e-Invoice. The recipient organisation must determine whether an e-Invoice is required under the LHDN guidelines and handle issuance accordingly.

This approach ensures that donors are relieved of compliance responsibilities while maintaining proper reporting and accountability for receiving organisations.

Example: Mr. Lim donates RM200 to a local sports club that is not tax-exempt. The club is responsible for issuing an e-Invoice if required. Mr. Lim does not need to create or submit any e-Invoice himself.

Special Cases: Religious Institutions & Mixed Activities

1. Donations and Offerings for Religious Purposes

Religious institutions that receive donations or offerings purely for worship or religious purposes are exempt from e-Invoicing. This includes:

• Zakat or tithe contributions
• Weekly offerings at temples, mosques, or churches
• Donations to religious funds not intended for commercial use

Even though no e-Invoice is required, organisations should record these donations internally for transparency and internal accounting purposes.

2. Commercial Activities by Religious Bodies

Commercial activities conducted by religious bodies are fully subject to e-Invoicing, regardless of religious status. All sales of goods or services must be issued with e-Invoices, including:

• Bookstore sales – e.g., selling religious books, souvenirs, or literature
• Food & beverages – e.g., café or canteen services operated by the institution
• Merchandise – e.g., religious-themed apparel or gift items

These commercial transactions are treated like any normal business activity and must comply with the standard e-Invoicing mandate.

Example Comparison : Donation vs Commercial Sale

Read: How To Submit Consolidated e-Invoice Via MyInvois Portal In Malaysia 

How to Issue a Consolidated E-Invoice for Donations

When a Consolidated E-Invoice Is Required

A consolidated e-Invoice must be issued monthly for all monetary donations where an individual e-Invoice was not requested by the donor. This ensures compliance with the LHDN e-Invoicing mandate while keeping internal donation records accurate.

Even if donors do not request an individual e-Invoice, the recipient organisation is responsible for reporting donations collectively through a consolidated e-Invoice.

Monthly Preparation Workflow

1. Aggregate all donations received during the month that did not have individual e-Invoices issued.
   
2. Prepare the consolidated e-Invoice using either your accounting software or the MyInvois Portal.
   
3. Verify mandatory fields are correctly completed as per LHDN requirements.
   
4. Submit the consolidated e-Invoice within 7 days after the end of the month.

This workflow ensures that your organisation meets deadlines and avoids penalties.

Mandatory Data Fields to Include

LHDN requires the following standard entries for all consolidated e-Invoices:

Example of Description Field Content

In the Description field, list all receipt numbers included in the consolidated e-Invoice. For example:

“Receipt #001, Receipt #002, Receipt #003 – Total donations for March 2025”

This provides traceability and ensures donors can reference their contributions if needed for tax purposes.

Key Things to Remember

• Only monetary donations require a consolidated e-Invoice; in-kind contributions do not.
• The consolidated e-Invoice serves as proof for compliance with IRBM reporting requirements.
• Using the standard Buyer Name and TIN codes ensures uniformity and avoids validation errors in MyInvois.

By following this process, organisations can efficiently manage monthly donations while staying fully compliant with Malaysia’s e-Invoicing regulations.

E-Invoicing for Tax-Exempt IOFs and Donor Tax Claims

How E-Invoicing Replaces Paper Receipts

For tax-exempt Institutions, Organisations, and Funds (IOFs), e-Invoicing has modernised donation documentation.

Previously, donors relied on pre-printed official receipts to claim tax relief. Under the new system, e-Invoices serve as the primary document for donor tax deductions, reducing the need for paper receipts while ensuring full compliance with LHDN requirements.

Donors Need E-Invoices for Tax Deduction

Donors can use individual e-Invoices as proof for tax relief claims.

• If a donor requests an e-Invoice, the IOF must issue it.
  
• If a donor does not request an e-Invoice, the IOF continues issuing a consolidated e-Invoice for all donations that month, and donors can still rely on it for documentation if needed.

This system ensures that all monetary donations are traceable and accounted for in LHDN records.

IOF Responsibilities Depending on Donor Request

The organisation’s obligations vary based on whether an individual e-Invoice is requested:

This approach balances donor convenience with regulatory compliance, simplifying reporting for both parties.

Example: Donor Requests vs No Request

• Example 1 – Donor Requests:
  Mr. Chan donates RM500 to a cancer research fund and requests an e-Invoice.
  • The fund issues an individual e-Invoice.
  • Mr. Chan attaches it to his tax filing.
  • No paper receipt is needed.
    
• Example 2 – Donor Does Not Request:
  Mrs. Lee donates RM300 but does not request an e-Invoice.
  • The fund includes her donation in the monthly consolidated e-Invoice.
  • Mrs. Lee may rely on this consolidated record for internal documentation, though she cannot claim an individual tax relief document unless requested in time.

Registration & Compliance Requirements

Proper registration and compliance are crucial for organisations issuing e-Invoices for donations and contributions. Malaysia’s LHDN guidelines specify how Tax Identification Numbers (TINs) and Business Registration Numbers (BRNs) should be handled depending on the organisation’s legal status.

1. TIN/BRN Rules for Registered Bodies

Organisations already registered with official government agencies must use their existing identifiers for e-Invoicing:

• Companies Commission of Malaysia (SSM): Limited companies and societies
• Registrar of Societies (ROS): Societies and associations
• Ministry of Education (MOE): Schools or educational bodies
• Trustee Act bodies: Foundations, trusts, or charitable organisations

Key requirement: Always use the official registration number provided by the relevant authority as your BRN when registering for TIN and issuing e-Invoices.

2. For Organisations NOT Registered under SSM/ROS

Some organisations may not have formal registration under SSM, ROS, or other agencies. In these cases, LHDN requires the use of the stamp certificate number from the organisation’s governing document (e.g., constitution, charter) as the BRN.

Important reminders:

• Always use the stamp certificate number, not the adjudication number.
• This number is required both for TIN registration and for all e-Invoicing submissions.
• Ensures the organisation remains compliant even without formal registration.

Example: A local religious committee not registered with SSM must use its stamp certificate number when submitting e-Invoices for monetary donations.

3. Branches of Large Religious Organisations

For national or multi-branch religious organisations, LHDN provides flexibility in TIN usage:

• Shared TIN: Branches can use the head office’s TIN and BRN if they operate under central governance and do not function independently.
• Separate registration: Individual branches should register separately only if they operate independently or wish to manage their own e-Invoicing and TIN submissions.

Example:

• A national charity with 10 local chapters can have all chapters use the head office TIN.
• If one branch runs separate fundraising events with independent finances, it may register for its own TIN and BRN. 

Deadlines & Compliance Timelines

Compliance with deadlines is essential for e-Invoicing of donations and contributions in Malaysia. Both donors and recipient organisations have responsibilities to ensure timely issuance and submission.

Donor Request Deadline

Subject to same-month donor request requirements under LHDN guidelines.

• This ensures the organisation can issue the e-Invoice promptly.
• Requests made after the month ends may be denied if the consolidated e-Invoice has already been prepared.

Tip: Encourage donors to request e-Invoices early to avoid delays, especially during peak fundraising periods.

Organisation’s Right to Deny Late Requests

Organisations may lawfully decline late requests once consolidated reporting has been completed.

• Late requests can disrupt accounting workflows and affect consolidated reporting.
• Maintaining this rule helps organisations comply with LHDN’s submission requirements.

Example: A donor donates RM500 on 15th March but requests an e-Invoice on 5th April. If the March consolidated e-Invoice has already been submitted, the organisation may legally deny the request.

Consolidated E-Invoice Submission Deadlines

For donations where no individual e-Invoice was requested, the organisation must issue a consolidated e-Invoice.

• Submission is mandatory within 7 days after the month-end.
• The consolidated e-Invoice should aggregate all donations for the month and include:
  
  • Buyer Name: General Public
  • Buyer TIN: EI00000000010
  • Other fields (ID, address, contact): NA
  • Description: List of receipt numbers

Example Timeline: Donations received in March without individual requests → submit consolidated e-Invoice by 7th April.

System & Software Requirements

Organisations in Malaysia can comply with e-Invoicing for donations and contributions without overhauling their accounting systems—provided their current software supports the required XML or JSON formats.

1. No Need for New Accounting Software

If your existing accounting system can generate e-Invoices in XML or JSON format and transmit them to IRBM, there is no requirement to purchase new software.

• This ensures a cost-effective transition for charities, foundations, and non-profits.
• Organisations can continue using familiar workflows while remaining compliant with LHDN’s e-Invoicing guidelines.

2. Option to Use MyInvois Portal

For organisations without compatible accounting software, the MyInvois Portal provides a free, user-friendly option.

• Create individual or consolidated e-Invoices directly via the portal.
  Submit e-Invoices to IRBM without additional software integration.
• Suitable for small organisations, or those processing a limited number of donations each month.

Tip: Even if your organisation has accounting software, MyInvois can serve as a fallback for occasional donations or one-off submissions.

3. When API Integration Becomes Necessary

API integration is recommended for organisations that:

• Process a large volume of donations every month.
• Require automatic e-Invoice generation from their accounting or fundraising system.
• want to sync donation records directly with IRBM for real-time compliance.

With API integration, e-Invoices are automatically generated in the correct format, validated, and submitted by reducing human error and saving administrative time.

Before & After: Key Changes from the July 2025 Update

The July 2025 update by LHDN introduced significant changes to e-Invoicing requirements for donations and contributions. Understanding these changes is essential for charities, foundations, and non-profit organisations to ensure full compliance.

Below is a comparison summarising the key differences before and after the update:

Common Compliance Mistakes to Avoid

While Malaysia’s e-Invoicing regulations for donations and contributions aim to streamline reporting, organisations often make avoidable errors. Being aware of these pitfalls can save time, ensure compliance, and prevent penalties.

1. Failing to issue e-Invoices for small cash donations

Even small cash donations are subject to e-Invoicing if the donor requests it. Many organisations mistakenly assume low-value contributions are exempt. Always verify the donor’s request and issue either an individual or include it in a consolidated e-Invoice.

2. Treating religious bodies incorrectly due to mixed activities

Religious institutions are generally exempt from issuing e-Invoices for pure donations. However, if a religious body conducts commercial activities like selling merchandise or food, e-Invoices must be issued for those transactions. Confusing donation handling with commercial sales is a common compliance error.

3. Missing the 7-day consolidated submission deadline

When donors do not request individual e-Invoices, organisations must submit a consolidated e-Invoice within 7 days after month-end. Delaying submission can lead to non-compliance notices from LHDN. Timely aggregation of donations and submission is critical.

4. Using incorrect BRN/TIN, especially for non-registered bodies

Non-registered organisations without SSM or ROS numbers must use the stamp certificate number from their governing document as their Business Registration Number (BRN) for e-Invoicing. Using incorrect identifiers such as adjudication numbers or random codes can cause system validation errors and compliance issues.

5. Issuing only paper receipts when donors requested e-Invoices

Paper receipts are no longer sufficient when a donor requests an e-Invoice. Organisations that continue issuing only manual receipts risk violating LHDN guidelines. Always provide the requested e-Invoice in XML/JSON format through MyInvois or a compatible system.

Read: Xero Malaysia Guide to e-Invoicing and Peppol Compliance

Conclusion

Accurate e-Invoicing for donations is now a clear legal obligation under Malaysia’s tax framework following the July 2025 LHDN update. The July 2025 update makes it clear that all monetary donations now require e-Invoices, either individually or as part of a consolidated submission, depending on donor requests. Organisations must be vigilant with deadlines, correctly apply BRN/TIN rules, and distinguish between pure donations and commercial activities. By following these guidelines, charities, foundations, and non-profits can stay compliant, ensure donors can claim tax relief, and avoid penalties from LHDN.

How FastLane Group Can Help

FastLane Group provides support for Malaysia’s e-Invoicing compliance. From integrating your accounting system with MyInvois, to consolidated reporting, and ensuring accurate BRN/TIN usage, our team helps organisations streamline their e-Invoice process for donations and contributions. Speak to FastLane Group to ensure your donation e-Invoicing setup is compliant, audit-ready, and correctly integrated with MyInvois.